1. Field of the Invention
The present methods and systems generally relate to receiving, processing, communicating and analyzing data related to financial transactions.
2. Description of the Related Art
Many financial institutions such as corporate banks, for example, provide clients with a wide range of financial services, including loan services and cash management services. The use of these financial services occasionally results in an overdraft or negative financial position associated with a particular service. The decision by the financial institution on how to address the overdraft occurrence, including whether to assess charges against the client, is dependent on a number of factors. Examples of such factors include the prior history of the client with the financial institution and promised actions by the client to address the overdraft occurrence. In any event, the financial institution needs to analyze the cause of the overdraft in an effective manner.
For example, if an overdraft occurrence in a client account results from a bank error in posting deposits or debiting withdrawals, the bank could extend credit to the client without imposing overdraft charges. However, when the client is a chronic offender of permitting an account balance to fall into a negative position, the bank might decide not to extend credit and impose an overdraft charge on the client. It can be appreciated that the decision by the financial institution for each overdraft situation depends on accessibility of information related to the details of the transaction and any actions of the client that may have caused the overdraft occurrence.
In conventional practice, a manager for a given client has primary responsibility for researching overdraft occurrences and deciding whether to pay or return overdraft items with or without imposing charges on the client. In view of the increasing volume of transactions conducted by various clients, it has been recognized that centralized processing of overdrafts could provide an enhanced degree of risk oversight and promote processing efficiencies. Employment of one or more overdraft representatives has become necessary to review and research overdraft information on a periodic basis. Typically, on a daily basis, a team of overdraft representatives submits written overdraft reports to the manager responsible for a particular client account. The managers review the submitted information and determine how to dispose of the overdraft condition. This approval usually requires a signed paper copy of the overdraft report to be faxed and mailed back to the centralized overdraft representative function for archiving.
It can be seen, however, that this manual process does not value the time of the manager involved with resolving a significant volume of overdraft transactions. Nor does this process sufficiently frustrate efforts by unscrupulous clients conducting “check kiting” schemes, for example, and other similarly fraudulent activities associated with overdraft conditions. Since there is inherent delay in manual processing of information related to the financial status of a client, such schemes can be difficult to detect and halt. Moreover, federal laws and regulations related to financial transactions generally require quick decisions on the disposition of items applied to a client account. All of these factors drive the need for more effective processing and communication of overdraft related data.
It has become evident that an effective centralized overdraft effort can have improved access to client information and more efficient means for communicating overdraft occurrences to managers. This overdraft effort can also have scalability in its processes sufficient to address the needs of the many managers in the financial institution, and not merely service a few select departments. Methods and systems are needed that permit overdraft representatives to communicate their analysis of overdraft occurrences to managers and promptly dispose of those occurrences. Methods and systems are also needed that permit managers and others to view current and historical summaries of overdraft occurrences and identify and address trends that impact the policies of the financial institution.